God & Your Finances Potomac Conference of Seventh-day Adventists Hugo F. Chinchay, M.B.A

God &Your FinancesPotomac Conference of Seventh-day

AdventistsHugo F. Chinchay, M.B.A.

Parable of the Talents

Matthew 25:14-30

Talent

1 Talent = 1K Gold coins

5 Talents = 5K Gold coins

1 Drachma = 1 Day Salary

6,000 Drachmas = 1 Talent

30,000 Drachmas = 5 Talents

19 Years of Salary = 1 Talent

95.24 Years of Salary = 5 Talents

Talent

1 Talent = $800K (53 Years*)

2 Talents = $1.6M (106 Years*)

5 Talents = $4M (265 Years*)

•(*Minimum Wage)

“...Well done, my good and faithful servant.

You have been faithful with few things; I will put you in charge of

many things...”Mat. 25:23

“Thou oughtest therefore to have put

my money to the exchangers, and then at my coming I should have received mine own with usury” Mat.

25:27 KGV

God is not going to give more than what

you’re capable of handling:

Money, work, responsibilities,

family, etc.

Stewardship - Commitment

Finances

Goals

Health

Personal Finances

Do you know how much you spend & how much you invest?

Do you know how much you save?

Investment or Expense?

Investment

Expense

Do I need it or want it?

Cars

Need

Want

TV’s

Enough

Want

The ConsumerSystem

Want Need

Enemy No. 1Debts and Use of Credit Cards

Make you a Slave

“The rich ruleth over the poor, and the borroweris servant to the lender” Prov. 22:7

Debts destroy Families

Divorce Separation

Fights Stress

Children suffer

Debts Make You Slave

“The rich rules over the poor, and the

borrower is servant to the lender” Prov. 22:7

Do you want to be DEBT FREE?Is it Possible?

Resources to Pay off Debts

Debt #1: $600 with $100 Monthly Payment

Debt paid in 3 months instead of 6 months

Resources to Pay off Debts

Debt #2: $1,600 with $200 Monthly Payment

Debt paid in 4 months instead of 8 months

Resources to Pay off Debts

Debt #3: $3,000 with $300 Monthly Payment

Debt paid in 3.3 months instead of 10 months

Resources to Pay off Debts

Debt #6 (car): $13,000 with $400 Monthly Payment

Debt paid in 8 months instead of 32.5 months

Summary of Debts

You can be TotallyDEBT FREE

Do you have a written Budget?

If you spend what you have every month and don’t have for emergencies and vacations then

you don’t have a budget

What is a Budget?

Budget doesn’t give you more money

Budget organizes you and helps you fund for all of your needs

Budget controls your expending

Budget helps you with your savings

Budget helps you plan in the right direction

How do you make a realistic budget?

Budget Step #1Take your bank statement or check register and list all your expenses:

Church, utilities, mortgage, food, car, eating out, cloths, school, medicines, etc.

Make sub-groups like: car, utilities, etc

Identify what is a monthly expense

Use a Miscellaneous line for expenses that are not frequent, but list them here.

EXPENSESEXPENSESChurch (Tithes & Offerings) $550

Rent - Mortgage (Monthly Payment) $2,000

Food (Monthly Average) $450

Insurance (Monthly Average) $150

Gasoline (Keep your Receipts) $200

Eating Out (Keep it to the Minimum) $550

School (You or Someone at home) $150

Electricity/Gas (Ask for Budget Plans) $210

Trash/Water $100

Telephone (Not land line necessary) $60

Cellular (Family plan/Pre-paid plan) $120

Internet (Plans) $80

Cable TV (Not Needed) $80

Miscelaneous (Repairs/Others) $300

TOTALTOTAL $5,000$5,000

Budget Step #2

Income Husband & Wife $$

Minus Expenses:ChurchFood

UtilitiesMortgage/Rent

CarClothing

MedicinesSchool, etc.

Left Over

The goal is to spend less than what you earn

to be able to save!

Budget Step #3Savings

Savings for Education

Savings for Emergencies

Savings for Medical expenses

Savings for Vacations

Savings for big purchases: Car, house, etc

Savings for Retirement (Investments, IRA)

HOW TO INVEST FOR THE FUTURE

Years $100/m $200/m $300/m $400/m $500/m

10 19,125 38,250 57,375 76,500 95,625

20 68,730 137,460 206,190 274,920 343,650

30 197,393 394,786 592,179 789,572 986,965

40 531,111 1,062,222 1,593,333 2,124,444 2,655,555

50 1,396,690 2,793,380 4,190,070 5,586,760 6,983,450

(Based on 10% average compound return)

401k401k

403b403b

Roth IRARoth IRA

“The desire to accumulate wealth is

an original affection of our nature, implanted there by our heavenly father for noble ends.”

COS p. 148

Wealth is not a matter of chance,Wealth is an issue

of choice!

3 Steps to achieve 10-15% Average Annual Yield

on all your Investments

for life!

Step 1Take Advantage

of Trends

Step IIPurchase High-

yielddividend PayingSecurities with

Historyof Appreciation

Step IIIPurchase Long

TermQUALITY High-Yield

Investment

You Need a Financial Advisor

What Is An Estate?

•$$$Money$$$Money$$

What Is An Estate Plan?

•Choosing When and How You Plan to Give Your Money Away

Everyone Has a Will

•You Choose Now

Yours OR Government

Estate Distribution•Only Three Places

Family Church Government

56 Copyright © 2009 Crescendo Interactive, Inc.

Charitable Annuity Trust

Church$242,342

After two lives, property to Church.

Mary Jones - 77 John Jones - 80

Principal$200,000

Two Lives

6.00% Annuity Trust

Annuity $12,000. Income in 15 years is $180,000.

Property$200,000

Income Tax Deduction $78,873. May Save $19,718.

57 Copyright © 2009 Crescendo Interactive, Inc.

Give Three Times!

Church$456,627

Remanider to Church

Transfer Property to Trust. Take Income Tax Deduction of $107,415. Pay no Tax on gain.

Property$350,000

Trust$350,000

Income Enhancement Unitrust

Johnny Donor 70 Mary Donor 70

Lifetime Income from trust: $24,500 per year for Two lives. May Increase Annually. Donors may receive $608,158 in 21.8 yrs

$608,158$456,627

$1,064,785Give three times

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“Give It Three Times” Trust

Church$576,290

Cost Basis: $100,000

Transfer property title to Trustee. Property is sold from trust. No tax on sale. Bypass capital gain tax. Income tax deduction: $100,120

Asset$400,000

Trust$400,000

Income to Family$500,000

$669,758$576,290

$1,246,048Give Three Times!

After 20 years

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Give It Twice Trust

Church$500,000

At Death, Estate assets fund a Testamentary Trust.

Trust is invested. Income is paid out to Family.

Estate$500,000

Trust$500,000

Income to Family$500,000

$500,000$500.000

$1,000,000Give Three Times!

Trust Terminates when Family has received an Amount equal to original Trust Principal

60 Copyright © 2009 Crescendo Interactive, Inc.

Give Three Times

Church$1,554.986

IRA is transferred to a non-taxable trust at time of death.

Estate Tax Deduction $272,605

No Income Taxes

IRA$1,000,000

Trust

Children ReceiveIncome for 20 Years

$1,616,314

$1,616,314$1,554,986$3,171,300

Give it threeTimes

Deferred Inheritance Unitrust

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Give Three Times!

Church$1,832,026

$1,232,000

$1,832,026

$3,062,026

Give Three Times!1. Transfer Property to Trust. Bypass Capital Gains Income Taxes.

2. Take Income Tax Deduction of $347,245

Property$1,000,000

Trust$1,000,000

Joh & Mary Donor both age 75

Living Annuity Trust

Lifetime Income from trust to Donors: $70,000 per year for Two Lives-joint & survivor. Total Income in 17.6 years: $1,232,000

What are your goals?

Spiritual Education Work

“The Lord will make you the head, not the tail. If you pay attention

to the commands of the Lord your God that I give you this day and carefully follow them, you will always be at the top, never

at the bottom”

Deuteronomy 28:13

• 606 Greenville Ave.,

• Staunton, VA. 24401

• (540) 886-0771

• (909) 831-0999 Cell

• hugoc@pcsda.org

• Call today to obtain your FREE Estate Planning documents, courtesy of Potomac Conference.

Trust Services Potomac Conference